Major bank issues back-to-back RBA interest rate cut call: 'Both'
Commonwealth Bank expects the Reserve Bank of Australia (RBA) will deliver back-to-back interest rate cuts at its July and August meetings following Wednesday's falling inflation figures. Financial traders have also upped their bets for a July rate cut, which would bring much-needed relief for millions of mortgage holders.
Headline inflation eased to 2.1 per cent over the year to May, down from 2.4 per cent the previous month. Trimmed mean inflation was down to 2.4 per cent in May, from 2.8 per cent in April, which was the lowest rate since November 2021.
Commonwealth Bank senior economist Belinda Allen said the bank now expected a 0.25 per cent cut at the July meeting, followed by another 0.25 per cent cut in August. The bank previously expected the next cut to come in August.
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'Based on the data flow, we now expect the RBA to cut the cash rate in July," she said.
"Today's monthly CPI print capped off a flow of data that should provide comfort to the RBA that a swifter return of the cash rate to neutral is both manageable and needed.
'The decision to the cut the cash rate in July will still be a close one. We expect there to be a discussion of both leaving the cash rate on hold and cutting by 25 basis points.'
Financial traders have upped their bets on a July interest rate cut, pricing in an 88 per cent chance of a cut next month.
KPMG chief economist Brendan Rynne said a 0.25 per cent point cut was 'warranted given the continued weakness in the private sector of the Australian economy'.
'On top of that, any increase in demand that comes about from a further drop in interest rates is unlikely to stoke the inflation genie in an unhelpful way,' he said.
ANZ economist Madeline Dunk said the July meeting would be a 'close call' and would depend on how concerned the RBA was with what has been happening globally.Sign in to access your portfolio
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PERTH, Western Australia, June 26, 2025 /CNW/ - Westgold Resources Limited (ASX: WGX) (TSX: WGX) – (Westgold or the Company) is pleased to announce it has awarded a three-year underground mining contract for its Great Fingall mine near Cue, to global mining contractor, Barminco Limited ( (Barminco). Barminco is an internationally recognised leader in underground hard rock mining. The award of this term contract for one of Westgold's smaller operations provides Westgold with the opportunity to redeploy its high performing team and equipment currently at Great Fingall to its larger, owner operated mines, including Beta Hunt in the Southern Goldfields and the Bluebird – South Junction mine in the Murchison. Westgold Managing Director and CEO Wayne Bramwell commented: "Westgold continues to focus on increasing mine productivity and further leveraging its extensive capital base. Our inhouse mining team and fleet is best deployed in our larger, strategic assets and this capability gives us the optionality to utilise specialist contractors in our smaller mines. The Great Fingall mine is a smaller mine and as such lends itself to contract mining. It is a high grade, but comparatively simple, operation - with cost efficiency and productivity underpinned by a detailed mine plan, robust drill data, favourable ground conditions and excellent, established mine infrastructure. After a competitive tender process, Barminco was selected as our partner for Great Fingall due to its stand-out safety processes, mining efficiency, and track record of delivery. These qualities reduce the execution risk around Great Fingall for Westgold and will ensure a smooth transition to contract operations in Q1, FY26. With the setup complete, Westgold's high performing team can now be deployed to our larger operating mines, and we expect productivity and operational outputs to lift with their arrival. We look forward to first production from Great Fingall in early FY26 and welcome the Barminco team to Westgold. This announcement is authorised for release to the ASX by the Board. Forward looking statements These materials prepared by Westgold Resources Limited include forward looking statements. Often, but not always, forward looking statements can generally be identified by the use of forward looking words such as "may", "will", "expect", "intend", "believe", "forecast", "predict", "plan", "estimate", "anticipate", "continue", and "guidance", or other similar words and may include, without limitation, statements regarding plans, strategies and objectives of management, anticipated production or construction commencement dates and expected costs or production outputs. Forward looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance and achievements to differ materially from any future results, performance or achievements. Relevant factors may include, but are not limited to, changes in commodity prices, foreign exchange fluctuations and general economic conditions, increased costs and demand for production inputs, the speculative nature of exploration and project development, including the risks of obtaining necessary licenses and permits and diminishing quantities or grades of reserves, political and social risks, changes to the regulatory framework within which the Company operates or may in the future operate, environmental conditions including extreme weather conditions, recruitment and retention of personnel, industrial relations issues and litigation. Forward looking statements are based on the Company and its management's good faith assumptions relating to the financial, market, regulatory and other relevant environments that will exist and affect the Company's business and operations in the future. The Company does not give any assurance that the assumptions on which forward looking statements are based will prove to be correct, or that the Company's business or operations will not be affected in any material manner by these or other factors not foreseen or foreseeable by the Company or management or beyond the Company's control. Although the Company attempts and has attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in forward looking statements, there may be other factors that could cause actual results, performance, achievements or events not to be as anticipated, estimated or intended, and many events are beyond the reasonable control of the Company. In addition, the Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of the factors outlined in the "Risk Factors" section of the Company's continuous disclosure filings available on SEDAR+ or the ASX, including, in the Company's current annual report, half year report or most recent management discussion and analysis. Accordingly, readers are cautioned not to place undue reliance on forward looking statements. Forward looking statements in these materials speak only at the date of issue. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, in providing this information the Company does not undertake any obligation to publicly update or revise any of the forward-looking statements or to advise of any change in events, conditions or circumstances. SOURCE Westgold Resources Limited View original content to download multimedia:
